Meridian Energy Limited · NZX:MEL
Meridian Energy — Shareholder Meeting (2018)
26 slides from Meridian Energy's shareholder meeting presentation, 2018
Slide 1: The Long Run: 2018 Annual Shareholder Meeting
THE LONG RUN MERIDIAN ENERGY LIMITED 2018 ANNUAL SHAREHOLDER MEETING
Slide 2: Order of Business
ORDER OF BUSINESS CHAIR’S ADDRESS CHIEF EXECUTIVE’S REVIEW QUESTIONS RESOLUTIONS Meridian Energy Limited 2018 Annual Shareholder Meeting 2
Slide 3: Chair's Address
CHAIR’S ADDRESS Meridian Energy Limited 2018 Annual Shareholder Meeting 3
Slide 4: Coalition Government
COALITION GOVERNMENT Government is looking to ensure New NZ 2016 SECTOR EMISSIONS 3% Zealand delivers a low emissions 5% 6% economy Electricity Road transport 17% Electrification offers the opportunity to Stationary energy* remove up to 32 million tonnes of Agricultural carbon Industrial processes 4
Slide 5: Electricity Price Review
ELECTRICITY PRICE REVIEW New Zealand electricity market is one of the best performing in the world Reinforced by the World Energy Council and New Zealand Productivity Commission Source: World Energy Council Meridian Energy Limited 2018 Annual Shareholder Meeting 5
Slide 6: Australia
AUSTRALIA State and Federal Government reviews RESIDENTIAL PRICE AUSTRALIA NEW of electricity price transparency and COMPARISON ZEALAND affordability Average 2018 prices, 40.76 29.03 Nominal, NZD c/kWh NZD c/kWh Including GST Australia is struggling to transition to a 2008-2018 5.1% per 1.4% per dec
Slide 7: Shareholder Highlights
SHAREHOLDER HIGHLIGHTS FY18 EBITDAF1 1.4% higher than FY17 TOTAL SHAREHOLDER RETURN % 2014 2015 2016 2017 2018 35% 33% 31% Dividends paid during FY18 1.9% higher 30% 25% than FY17 20% 19% 17% 14% 15% Total shareholder return in FY18 of 14% 10% 5% 0% Capital management programme 2014 2015 2016 2017 2
Slide 8: Our People
OUR PEOPLE Neal Barclay, new Chief Executive since 1 January 2018 Resignation of Stephen Reindler, Director since 2008 Institute of Directors Future Director Meridian Energy Limited 2018 Annual Shareholder Meeting 8
Slide 9: Chief Executive's Review
CHIEF EXECUTIVE’S REVIEW Meridian Energy Limited 2018 Annual Shareholder Meeting 9
Slide 10: Sustainability Leadership
SUSTAINABILITY LEADERSHIP Renewable generation supports our authentic sustainability leadership 90% electric Meridian passenger fleet by 2020 Seeking hydro insurance products from cleaner forms of fuel Net carbon zero across our operations Standout green credentials in Australia Meridian Energy Limi
Slide 11: Our People
OUR PEOPLE Unrelenting commitment to the safety and wellbeing of our people Committed to achieving gender pay parity, currently 98% Rainbow Tick accreditation supports our diversity and inclusion Voluntary increase in paid parental leave to 22 weeks Meridian Energy Limited 2018 Annual Shareholder Me
Slide 12: Financial Performance
FINANCIAL PERFORMANCE Two significant dry periods during FY18 MERIDIAN'S WAITAKI STORAGE GWh FY2018 Average 2,500 Lowest generation volumes since 2013 2,000 Improved electricity hedge markets 1,500 Delivering on our strategy of growing in 1,000 retail and overseas 500 01-Jul 01-Sep 01-Nov 01-Jan 01-
Slide 13: Our Customers
OUR CUSTOMERS Customer connections grew by 14,000 NEW ZEALAND CUSTOMER NUMBERS ICP (000) during FY18 300 Disconnection rate has reduced by 80% 290 in the last five years 280 270 291 Meridian is replacing prompt payment 277 276 275 277 260 discounts with a guaranteed discount not tied to a due date 2
Slide 14: New Zealand Aluminium Smelters
NEW ZEALAND ALUMINUM SMELTERS Meridian is supporting NZAS with an additional 50MW energy solution A good sign that NZAS are investing in increased production at Tiwai Point Meridian Energy Limited 2018 Annual Shareholder Meeting 14
Slide 15: Retail Electricity Prices
RETAIL ELECTRICITY PRICES Mostly supportive of the Electricity Price REAL RESIDENTIAL ELECTRICITY COST c/KWh Energy and other component Lines component Review Panel’s findings 19 +4% 17 since 55% of New Zealanders considered 15 2009 switching electricity retailer in the last 13 +28% year since 2009
Slide 16: Demand Outlook for the Sector in NZ
DEMAND OUTLOOK FOR THE SECTOR IN NZ Medium term demand growth looks to DEMAND FORECASTS TWh NZ Historical Demand be similar to current modest growth, 90 Transpower however: 80 MBIE - High MBIE - Low 70 Productivity Comm. - High Current thermal generation is aging 60 Productivity Comm. - Low Meridian
Slide 17: Offshore
OFFSHORE Volatile Australian electricity market has seen customer growth stop New hydro assets and renewable offtake agreements acquired Retail gas launched in Victoria Customer growth of 38% in the Powershop UK customers since July 2018 Meridian’s new Australian hydro assets, from top, Hume, Burrin
Slide 18: Concluding Comments
CONCLUDING COMMENTS Current storage is slightly below MERIDIAN'S WAITAKI STORAGE GWh 2,500 average 2,000 Stronger national focus on climate 1,500 action will benefit the electricity sector 1,000 and Meridian 500 Fundamentals of the business remain 0 strong 1-Jan 1-Mar Average 1979- 1-May 2015 1-Jul
Slide 19: Questions
QUESTIONS Meridian Energy Limited 2018 Annual Shareholder Meeting 19
Slide 20: Resolutions and Voting
RESOLUTIONS AND VOTING Meridian Energy Limited 2018 Annual Shareholder Meeting 20
Slide 21: Vote Totals
VOTE TOTALS RE-ELECTION OF RE-ELECTION OF RE-ELECTION OF MARK CAIRNS ANAKE GOODALL PETER WILSON POSTAL AND ONLINE VOTES ALREADY CAST FOR 584,210,583 586,381,265 583,768,375 AGAINST 2,878,427 671,008 3,263,480 ABSTAIN 1,806,196 1,808,183 1,837,801 VOTES APPOINTED TO PROXIES NOT YET CAST1 1,312,450,73
Slide 22: Resolution 1: Re-election of Mark Cairns
RESOLUTION 1 Re-election of Mark Cairns That Mark Cairns, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company Meridian Energy Limited 2018 Annual Shareholder Meeting 22
Slide 23: Resolution 2: Re-election of Anake Goodall
RESOLUTION 2 Re-election of Anake Goodall That Anake Goodall, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company Meridian Energy Limited 2018 Annual Shareholder Meeting 23
Slide 24: Resolution 3: Re-election of Peter Wilson
RESOLUTION 3 Re-election of Peter Wilson That Peter Wilson, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company Meridian Energy Limited 2018 Annual Shareholder Meeting 24
Slide 25: Closing
CLOSING Meridian Energy Limited 2018 Annual Shareholder Meeting 25
Slide 26: Disclaimer
DISCLAIMER THE INFORMATION IN THIS PRESENTATION WAS PREPARED BY MERIDIAN ENERGY SECURITIES. WITH DUE CARE AND ATTENTION. HOWEVER, THE INFORMATION IS SUPPLIED IN THIS PRESENTATION CONTAINS A NUMBER OF NON-GAAP FINANCIAL MEASURES, SUMMARY FORM AND IS THEREFORE NOT NECESSARILY COMPLETE, AND NO INCLUDIN